Standard Pension Credit rates will rise by 3.9% from April 2027 (Image: Getty)
State pensioners on low incomes are being given up to £484 extra in Pension Credit payments from April under Andy Burnham’s Government.
The payment boost comes from a 3.9% uplift to standard Pension Credit rates, which can be claimed by people of State Pension age on low incomes in England, Scotland or Wales to help with living costs. You can get the benefit even if you have other income, savings or you own your own home and it is paid separately from your State Pension. The Government has confirmed that the standard minimum guarantee in Pension Credit will increase by 3.9% from April, in line with the increase in average weekly earnings in the year to May-July 2026.
It is the same uprating being given to both the basic and new State Pensions in the 2027 to 2028 tax years, with the Government saying the uplift will help protect the incomes of the poorest pensioners.
The change means from April 2027, the standard Pension Credit rate will increase from £239 per week to £247.30 for single pensioners. This represents a weekly payment boost of up to £9.30, or around £484 annually.
For pensioner couples, the joint weekly rate is rising from £363.25 to £377.40 from April, giving claimants up to £14.15 more per week, or around £736 extra per year.
When you apply for Pension Credit, your income is calculated and this takes into account your State Pension, other pensions, savings, earnings and any social security benefits you might get, so this can affect your eligibility, or reduce your payments.
Confirming the new April 2027 rates, Pat McFadden, Secretary of State for Work and Pensions, said: “I am pleased to announce that the basic and full rate of the new State Pensions will be increased by 3.9%, in line with the increase in average weekly earnings in the year to May-July 2026.
“This delivers on our triple lock commitment throughout this Parliament to increase these rates in line with the highest of growth in prices, growth in earnings or 2.5%. From April, the full annual rate of the new State Pension will increase by around £490. The full annual rate of the basic State Pension will increase by around £375.
“The standard minimum guarantee in Pension Credit will also increase by 3.9% in line with the increase in average weekly earnings. From April, it will be £247.30 a week for a single pensioner and £377.40 a week for a couple, ensuring the incomes of the poorest pensioners are protected.”
Around 1.4 million pensioners households are already benefiting from Pension Credit and will benefit from the 3.9% uplift from April, but according to the Department for Work and Pensions (DWP), hundreds of thousands of eligible pensioners may still be missing out on the vital support.
The DWP began sending out letters to 660,000 households last month urging pensioners to check their Pension Credit eligibility and start claiming the benefit, which is currently worth more than £4,500 on average per year.
If you qualify, the benefit can open the door to a wealth of other financial help including a Council Tax discount, help with heating and energy costs, and a free TV licence if you’re over 75, so it’s worth checking your eligibility.
Minister for Pensions Torsten Bell said: “Far too many pensioners are missing out on support they’re entitled to. Pension Credit is worth more than £4,500 a year on average and can make a real difference to people’s finances, while also opening the door to help with bills and other everyday costs.
“If you think you might be eligible, it’s worth checking. We want to make sure pensioners get the support they’re entitled to and don’t miss out on money that could help them in retirement.”
